I noticed this report in Forbes last week which discussed a recent increase that Goldman Sachs was making on their savings account interest rates. As you can see in the above graphic they now offer a 1.2% return on their savings account with a minimum investment of just $1. They are aggressively seeking new savings to boost their deposits.
So, I did a bit of research on what Goldman Sachs Bank is offering compared to others in the market. I looked at Bankrate and Nerdwallet to see who were the top offerings for savings accounts and CDs of various duration. What was interesting to me is that Goldman Sachs was at or near the top in every category.
For savings accounts there were a couple of small regional or local banks that had slightly higher rates but no major national banks were higher. If you look at 3-year CDs with a minimum investment of $500 (the Goldman Sachs minimum) I could not find an offering anywhere in the country that came close to matching Goldman’s 1.90% rate. In fact, the second highest rate available anywhere for a $500 3-year CD was 1.65% from Barclays. These deposits are all insured up to the FDIC maximum.
What was also noticeable was that Goldman Sachs is advertising heavily on Google. Their ad in the search results for savings accounts and CDs was always right near the top and their display ads kept on following me around at many websites since I started this research. What was also interesting is that their ratings on the aggregator sites was usually very high, often 5-stars. People seem to like dealing with them.